Gastronomy Tourism Growth in Malaysia: A Case Study of Malay Restaurants Performance in Klang Valley

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Journal of Tourism & Hospitality EducaƟon (2020) 10, 8-21

               Journal of Tourism & Hospitality Education

     Gastronomy Tourism Growth in Malaysia: A Case
     Study of Malay Restaurants Performance in Klang
                          Valley
                              Raja Puteri Saadiah Raja Abdullah
      Department of Foodservice Management, Universiti Teknologi MARA, Selangor, Malaysia
                                      put@uitm.edu.my
                                          Siti Suriawati Isa
                 Department of Recreation and Ecotourism, Universiti Putra Malaysia
                                        ssuria4@upm.edu.m

Article History                                                 Abstract
Received 17 February 2020
Accepted 14 March 2020         Today one of the most popular niche tourism markets is
                               gastronomy tourism. The popularity of gastronomy tourism is
                               also called as soft power approaches by some tourism scholars.
                               This niche market is part of cultural and ecotourism market.
                               Malaysia is recognized as a multi-ethnic and multicultural
                               country that includes countless ethnics such as Malay, Chinese,
                               Indian and others. Although Malay leads the major ethnics in
Keywords                       Malaysia, Malay restaurant less likely can stay longer in the
Gastronomy,                    industry. There are several factors from previous cases involve
cultural tourism,              in Malay restaurants that result to this ethnic’s restaurant fail
ecotourism, Malay              to survive. Since Malaysia is a multi-ethnic country the food
ethnic, Klang Valley           in Malaysia have combination from all ethnics and unique
                               in its own way. Each state in Malaysia has their own dishes
                               and some dishes may differ from another state. Since Malay
                               or Bumiputra ethnic comprises the biggest ethnic in Malaysia
                               with more than half of the country’s population, the objective
                               of this study was to analyze the internal factors affecting
                               business growth performance in Malay ethnic restaurant.
Corresponding Editor
Ramesh Raj Kunwar
                               Survey questionnaires were distributed to selected Malay
kunwar.dr@gmail.com            restaurants to find out about their growth rate performance.
Copyright © 2020 Authors
Published by: AITM School of Hotel Management, Knowledge Village, Khumaltar, Lalitpur, Nepal
ISSN 2467-9550
Abdullah/Isa: Gastronomy Tourism Growth in Malaysia: A Case Study of Malay ...   9

Findings in this study found that the internal factors are consisting of management
orientation, organizational culture, technology orientation, alliance and cooperation
and market orientation.
   Introduction to gastronomy tourism
    This article can be divided into four main section. The first section will discuss the
introduction followed by literature review, than methodology, after that result and
discussion will be presented and finally conclusion and recommendation. Tourism
Malaysia states that the multiculturalism has made Malaysia a gastronomical
paradise and home of hundreds of colourful festivals (Tourism Malaysia 2019).
Malaysia have fourteen states and in each state of Malaysia, it has its very own unique
traditional food (Omar, Mohd Adzahan, Mohd Ghazali, Karim, Abdul Halim & Ab
Karim 2011) due its multiethnicity. Malaysia total population is estimated 32.68
million according to the Department of Statistics Malaysia in 2020. The biggest
ethnic is Malay or Bumiputra (69.3%), followed by Chinese (22.8%), Indian (6.9%)
and others (1.0%). The country is well known as the melting pot of Asia and most
multicultural nations in southeast Asia (Webster 2010) since the 16th. century. As
a result, most of Malaysian culture including dishes and food have mixture from
these ethnics. They influence each other to some extent and that is the significant
different of Malaysian food compared to other countries although some might have
similar names. For example, Malaysian sate and rendang dishes have similar names
with Indonesia dishes but the ingredients, preparations and taste are different. Based
on the uniqueness of Malaysian food many scholars agree it has great potential to
become one of the country’s attraction for tourists. Food or gastronomy tourism also
help to boost up the tourism industry of one country and serve as soft power for the
country (Hussin 2018). For example, many scholars agree food can be a useful soft
power vehicle such as, hamburgers associated to the United States, sushi link to Japan
and tomyam associated to Thailand, and when applied correctly can produce control
and coercion in both the political and social spheres (Reynolds 2012).
     In Asia, food play a significant role in their culture and lifestyle. For example, in
Malaysia, people eat almost 24 hours and as a result there are many 24 hours eateries all
over the country including in small towns. Also, it is common for Malaysians to have
six meals a day particularly during special events and food price is still reasonable even
in big cities. When Malaysians hosted their guests one of the most important aspects
is to serve their guests with a lot of good food. Although food play a significant role
in Malaysia but Malaysian food is underrated and not getting the global recognition it
deserves (Calderon 2017) compared to her neighbour like South Korea, Vietnam and
Thailand. International market are more aware with kimchi and spicy noodle (South
Korea), tomyam and somtam (Thailand), and Vietnam roll (Vietnam). As a result, in
2009 Malaysian government under the then Ministry of Tourism and Malaysia External
10   Journal of Tourism & Hospitality EducaƟon (2020) 10, 8-21

Trade Development Corporation (MATRADE) introduced Malaysia Kitchen program
to the international market. They started with the United States, United Kingdom,
Australia and China. The main aim of this program is to generate publicity about
Malaysian cuisine, restaurants, and also food and beverage products (The Star 2013).
They received positive response from these countries and as a result the international
market starting to recognise Malaysian dishes such as; nasi lemak, rendang and sate.
All of these dishes are part of Malay ethnic traditional cooking which also represent
Malaysian culture and these dishes have different taste, ingredients and preparations
compared to Indonesian dishes although the names are similar. Nonetheless, the
popularity of Malay ethnic dishes domestically and internationally does not represent
the sustainability of their restaurants in the market. Malay ethnic restaurants have the
lowest life span of business in the market (Othman, Zahari, & Radzi, 2013).
    According to Says Malaysia (2016), seven restaurants that are still on going
for business in Malaysia for over five decades mostly come from Chinese ethnic
restaurants although their population is much lower than the Malays. On one hand,
the Chinese ethnic are stated to eat outside more often compared to other ethnics in
Malaysia (Dass, 2019). On the other, this can be an indicator to represent that Malay
restaurant is still lacking in many aspects in order to grow and develop within this
business sector. Although there are a few Malay ethnic restaurants that are successful
in Malaysia such as; Sate Kajang Hj Samuri and Tam Nasi Ayam both started their
eatery businesses in Klang Valley but their numbers are significantly low as compared
to Chinese and Indian ethnic restaurants. There are several factors from previous
cases which involved Malay restaurants that are failed to survive. According to Parsa,
Self, Njit, and King (2005), managerial perspective, such as the managerial restrictions
and lack of skills, is the factor that can lead to restaurant failure. In addition, the
organization culture also has become the issue of restaurant failure. O’Donnell
and Boyle (2008) state that, organizations’ culture compresses the things that the
company has practiced before. According to Othman, et al. (2013), Malay restaurants
were unable to operate for a long period due to lack of customers’ interactions with
the staffs, low in service quality and service offers which are always being criticized
with the overall of given lowly service delivery in restaurant. Besides that, although
Malay restaurants are remained to growth quickly, however, these restaurants persist
with troubles in terms of service delivery especially in waiting times for customers to
receive their meals (Othman et al. 2009); Othman, et al. (2013). Whereas the success
of Indian ethnic especially “Mamak” (Indian Muslim) restaurants in Malaysia is
due to factors such as; good location, environment, product, facilities, service and
price (Othman, Kandasamy, Abu Bakar, & Chua, 2018). Hence, Othman et al. (2018)
suggested that food operators in Malaysia should emulate the strategies and practices
of Mamak restaurants’ management to maximise the potential of their business.
Abdullah/Isa: Gastronomy Tourism Growth in Malaysia: A Case Study of Malay ...   11

    Therefore, since the problems that caused Malay restaurants failed to sustain in the
industry have been identified, there is a conceptual framework that can be developed
to overcome this issue. This research attempted to investigate the internal factors
in Malay ethnic restaurants to grow, stay competitive and remain their business in
foodservice industry for a long term period. The specific research objectives would
be: 1) to determine the relationship between management orientation and business
growth performance; 2) to identify the relationship between organizational culture
and business growth performance and 3) to identify the relationship between market
orientation and business growth performance. The conceptual framework for this
study has been developed based on Storey (1994) model as a guideline in order to
investigate the internal factors in Malay ethic restaurant (refer figure 1).
   Figure 1: The conceptual framework

 Management Orientation

                                                                             Business Growth
  Organizational Culture
                                                                              Performance

    Market Orientation

   Source: Storey (1994)
   Literature review
    In this section discussion on related literature will be presented. According to
the World Travel and Tourism Council (WTTC) (2015), travel and tourism industry
is developing more rapidly compared to all broader economy and other important
sectors like automotive, financial services and health care at recent years. Statisca
(2016) reported that food and beverage industry in Malaysia was revenue with
amount of US$17 million in September 2016 and it is forecasted to be US$71 million
in 2021 by the annual advance rate of 33.6 % from the market volume. In addition,
many types of food service establishments have emerged in Malaysia in the earlier
decades such as fine dining, specialty, fast food, casual, theme, ethnic restaurants and
even mixture of more than one category (Othman et al., 2013). The main ethnics in
Malaysia (Malays, Chinese and Indians) have developed their own ethnic restaurants
as to serve the meals to own ethnics and portray their culture and heritage to other
citizens and foreign tourists. These restaurants play the crucial role to attract the
tourists to know more about the Malaysia and at the same time to enhance the
economy. However, the minority ethnics such as; Middle Eastern, Portuguese and
Thais also have their own restaurants establishments all across Malaysia.
12   Journal of Tourism & Hospitality EducaƟon (2020) 10, 8-21

    Each ethnic has their popular dishes and gained recognition in the local and
international market. Among the popular Malay ethnic dishes are such as; nasi
dagang, nasi kerabu, nasi lemak (figure 1), rendang and sate. While Chinese ethnic is
popular for their char kueyteow, dim sum and steamboat dishes. The Indian ethnic
is well known for roti canai, mee goreng mamak and nasi kandar. All of these dishes
are becoming the country’s image and everyone enjoy eating them. Unfortunately,
Malaysian food is still unknown to the international market whereas it is one of the
most remarkable and exciting cuisines in the world because it has roots in so many
cultures and ethnics in Malaysia (Leesan, 2019). In addition, Malaysia has always been
in the top 20 most visited country in the world for the past 20 years. However, that is
not the main issue of this study. The main issue of this study to find out the business
growth performance of Malay ethnic restaurant that is hard to sustain in the market
although they have many popular dishes locally and internationally. In addition,
a government funded initiative program to promote Malaysian cuisine called Jom
Makan (Lets Eat) restaurants open in Britain and Japan was deemed a failure. All the
restaurants closed down after only a few years of operation (Kosaku, 2010). Whether
there is connection between the program and Malay ethnic restaurants is something
future research need to address.
     Figure 2: The traditional nasi lemak in Malaysia

     Source: bakewithpaws.com (2018)
    This study has come up with a modified conceptual framework from Storey
(1994) has been adopted by this study as shown in figure 1. There are three elements
this study identified to look at;
Abdullah/Isa: Gastronomy Tourism Growth in Malaysia: A Case Study of Malay ...   13

   Management orientation
     Management orientation is define as management process of anticipating,
identifying and satisfying requirements profitability which consist of several objectives
including; increase sales volume, growth rate, market share, market penetration,
minimise return on investment, promote social responsibility and promoting positive
company image (Chartered Institute of Marketing, 2014). An organization’s decision
of reaction within the environment depends on its beliefs about the environment and
its beliefs on regardless of whether its activities can have an effect on the environment.
A number of researchers have examined the relationships between specific, tangible
organizational variables and firm level performance. McGahan and Porter (2002)
found that industry association, business specific impacts, and corporate-parent
impacts positively anticipated financial performance, yet were subject to change after
some time.
   Organizational culture
    Titiev (1959) found the culture should be learned in the organization. Schein (1990)
defined organizational culture is about what a group learns over period of time as
that group solves its problems of survival in an external environment and its problem
of internal integration. Restaurant operators are very concern with the organizational
commitment that affects between the employees. Jorritsma and Wilderom (2012)
stated that improving service through organizational culture change is important
to the survival and growth in the companies. According to Koutroumanis, Watson
and Dastoor (2012) the main elements of organizational culture is relating to service
quality and customer intentions. Pantouvakis & Bouranta, (2013) added that the role
of employee job satisfaction is related to organizational learning culture and customer
satisfaction. Furthermore, successful leadership can raise employee commitment and
brand supporting behaviours (Wallace, de Chernatony & Buil, 2013).
   Market orientation
    Altinay (2010) define market orientation as values concept of people and state
that it portrayed the visualization, the strategic way, and orientation of a firm.
Market Orientation has been rationally created as applicable to whole commerce
performance (Perry, 2014). Furthermore, Mujahid Hilal and Mubarak (2014), in
their research identified that the market orientation is one of the critical elements
to corporate management as well as production or cost orientation and employee
orientation as it can lead to the corporate success. Protcko and Dornberger, (2014)
prove that the previous research by Narver & Slater (1990), where they found that
market orientation is correlated to return on assets (ROA). Mokhtar (2014) also stated
that, the multi-functional of market orientation also include that the communication,
interpretation, and spreading of marketing information must occur towards some
14   Journal of Tourism & Hospitality EducaƟon (2020) 10, 8-21

important functional areas of the organization.
    Although there are other elements in business growth performance used by other
studies but for this study managment orientation, organisational culture and market
orientation are sufficient enough to measure the issue of this study. Researchers
such as; Storey (1994), Tuan and Takahashi (2009) also used three factors in their
conceptual framework to measure the business growth performance. Hence, this
study decided to follow their example.
     Research methodology
    Quantitative method was used by this study in order to get the data needed. The
questionnaires was designed based on the conceptual framework of business growth
performance discussed earlier and taking into consideration the three objectives set
by this study. The main reason why questionnaires is used to gather the data for this
study are because; inexpensive, practical, fast results, scalability, comparability, easy
analysis, validity and reliability, standardized, no pressure and respondent anonymity
(refer Bryman and Bell 2015). Due to that questionnaires is the best option for this
study due to the nature of the topic.
    The sample populations of this study were among the management staff of Malay
restaurant located around Shah Alam, Selangor. Shah Alam is the capital city of
Selangor state which located in Klang Valley and identified to have one of the highest
Malay ethnic population group in Malaysia also known as “Malay City”. Based on
Department of Statistics Malaysia 2010 census 65.5% of the city population are from
Malay ethnic. As a result, the number of Malay ethnic restaurants in Shah Alam is
significantly high. Since the topic of this study is focusing on Malay ethnic restaurant
Shah Alam is the best choice to conduct this study. The sample size of response
was calculated based on the total number of Malay restaurants in Shah Alam
registered with Companies Commission of Malaysia (SSM) until 2017. In addition,
the researchers also identify few characteristic before distributing the questionnaires
in order to get the best sampling for this study. For instance, the restaurant has to
provide at least 80 percent of Malay food, the restaurant must have established at least
2 years and above, and also the respondent shall be among supervisor, managers and
above. In addition, the restaurant should have a staff of over 10 employees. From the
total number of Malay restaurants in Shah Alam, only 35 were chosen as the sample
size for this study with 102 respondents. Sekaran (2013) defined sampling a process
of selecting an enough essential features from the population, so that the study of
the sample and an understanding of its characteristics would make it possible for the
researcher to generalize to the population.
    The questionnaires was distributed by hand directly to the supervisors, manager
and above at their restaurant establishment with the presence of enemurator of this
Abdullah/Isa: Gastronomy Tourism Growth in Malaysia: A Case Study of Malay ...   15

study for the period of three months. This is to make sure the respondents answer
the questionnaires immediately once they received the questionnaires and to guide
them in answering the questions better. As a result, this study managed to get good
respond rate from the respondents. All data is analysed using SPSS software package
for questionnaires.
   Results and discussion
    In the demographic section, there were 55 female respondents with 53.92% of
total respondents and 47 (46.08%) were male respondents. There are seven groups
of respondents in the restaurant which involve; (1) owner, (2) senior management,
(3) manager, (4) executive, (5) supervisor, (6) officer and (7) others. The highest
frequency respondents role in restaurant is supervisor with the frequency of 28.43%
(n=29) and followed by the owner of the restaurants with 24.51% (n=25). Besides
that, about 19.61% (n=20) represent the respondents with the others role in the
restaurant despite than management team and 16.67% (n=17) is the frequency from
respondents with manager of restaurant. Apart from that, respondents of senior
management frequency is 4.90% (n=5) followed by executive and officer roles of
the restaurant from respondents have the frequency of both 2.89% (n=3). There are
three kind of concept in this result includes; (1) Original concept (never existed in
or out Malaysia), (2) Originated from an existing concept in Malaysia and (3) others
concept. The highest frequency of restaurant concept of Malay ethnic restaurant is
originated from an existing concept in Malaysia with 92.16% (n=92) followed by the
others concept as with the frequency of 4.90% (n=5) and lowest is original concept
(never existed in or out Malaysia) with the frequency of 2.94% (n=3). Since Malay
ethnic restaurant is the well-known ethnic food service establishment in Malaysia,
therefore, the concept of most of the respondent’s current working restaurant is the
originated from an existing concept. Five type of restaurant’s legal status have been
grouped in this study which including (1) sole proprietorship, (2) joint liability, (3)
limited liability, (4) partnership, (5) joint venture and (6) professional. Within this
study, sole proprietorship is shown the highest frequency with 88.24% (n=90). Besides
that, the frequency of partnership in restaurant is shown 9.80% (n=10) followed by
the joint liability and joint venture both were recorded 0.98% (n=1). Meanwhile, the
other restaurant business entities such limited liability and professional are none
within in this study.
    In this study, the researcher used multiple regression analysis to answer the
research questions appropriately where it involves several predictors and dependent
variables. The results from the output shows that the R Square values was 0.302, which
means 30.2% of the variation in business growth performance value can be explained
by the dimensions of independent variable which is the management orientation.
This analysis was being used with the aim to explore the relationship between the
16    Journal of Tourism & Hospitality EducaƟon (2020) 10, 8-21

management orientations towards business growth performance in Malay Restaurant.
Based on the analysis, the p-value for the management orientation was 0.00, which
is less than 0.05. Hence, researcher are able to conclude that there were a significant
effect and relationship between the management orientation and business growth
performance. Meanwhile, Beta coefficient score measures of the total variation in the
dependent that was explained by the independent variable (Pallant, 2013). Above,
the figure showed the score of beta coefficient for management orientation was 0.550
(refer figure 2). It reflects that 55.0 percent of the total variation of business growth
performance value was influenced by the dimension of management orientation. Thus,
it also indicates that the management orientation has become one of the contributor
to business growth performance value in the Malay restaurant. This analysis used
in order to explore the relationship between the organizational cultures towards
business growth performance in Malay Restaurant. From the results, it shows that the
R Square values was 0.241, which means 24.1% of the variation in business growth
performance value can be explained by the dimensions of independent variable which
is organizational culture. Based on the analysis, the p-value for the organizational
culture was 0.00, which is less than 0.05. Hence, researcher are able to conclude that
there were a significant effect and relationship between the organizational culture
and business growth performance. Meanwhile the figure showed the score of beta
coefficient for organizational culture was 0.491 which reflects that 49.1 percent of
the total variation of business growth performance value was influenced by the
dimension of organizational culture. Further, it also displays that the organizational
culture has become one of the contributor to business growth performance value
in the Malay restaurant. The analysis shows that the R Square values was 0.300,
which means 30.0% of the variation in business growth performance value can be
explained by the dimensions of independent variable which is the market orientation
and the figure showed the score of beta coefficient for market orientation was 0.548.
It reflects that 54.8 percent of the total variation of business growth performance
value was influenced by the dimension of market orientation. Thus, it also indicates
that the market orientation has become one of the contributor to business growth
performance value in the Malay restaurant.
     Figure 3: Result for internal factors

 Management Orientation
                                                     0.550
                                                                    Business Growth
     Organizational Culture                          0.491
                                                                     Performance
                                                     0.548
      Market Orientation
Abdullah/Isa: Gastronomy Tourism Growth in Malaysia: A Case Study of Malay ...   17

    Above, the figure showed the score of beta coefficient for each internal factors
and management orientation was said to be the highest one which was 0.550. It
reflects that 55 percent of total variation of business growth performance value was
influenced by dimension of management orientation. Based on this analysis, it can be
concluded that all hypothesis under all dimensions were supported and accepted. It
could be concluded based on the result that the internal factors which is management
orientation, organizational culture, and market orientation provided by the Malay
restaurant does influence the business growth performance value.
    The findings suggested that food service leaders are aware with the effective
organizational culture that could determine the level of future operational success.
Culture also involve employees, the power of a strong culture to guide business
success become more obvious, happiness, better to co-workers and high morale.
Jorritsma & Wilderom, (2012) found that improving service through organizational
culture is an essential tool to the survival and growth in the companies. According to
Koutroumanis, Watson and Dastoor (2012) the main components in the organizational
culture includes service quality and customer intentions. Organizational learning
culture and customer satisfaction have the relationship with the role of employee job
satisfaction (Pantouvakis and Bouranta, 2013). According to the data collected, this
study found that, market orientation is crucial as to enhance the business development
and performances. This result also portrayed that, about 54.8% of management teams
of Malay ethnic restaurant come to an agreement that the internal factor of market
orientation has influenced the positive business development performances.
   Conclusion
    The research objectives were to investigate the relationship of management
orientation, organizational culture and market orientation toward business growth
performance in Malay restaurant. Explicitly, it shows that the management staff in
Malay restaurant agree that management orientation has become one of the primary
factors that contribute to business growth performance. Based on the result, researcher
also conclude that organizational culture and market orientation had a positive and
significant relationship towards business growth performance Malay restaurant. In
addition, Malay ethnic restaurants can learn from the success of ‘Mamak” restaurant
in Malaysia. Not only most of “Mamak” restaurants able to sustain in the market for a
long time but they also managed to expand their restaurant business by opening many
branches all over Malaysia. Chinese ethnic restaurants also are not as successful as the
“Mamak” restaurant in expanding their businesses and branches all over Malaysia.
    The outcome in this study has emerge the new knowledge that can be beneficial
for industry and academician based on the internal factors such management
orientation, organizational culture and market orientation towards the business
18   Journal of Tourism & Hospitality EducaƟon (2020) 10, 8-21

growth performance. Within this study, the researcher manages to get the positive
significant relationship for all internal factors onto business growth performance
           Social Carrying Capacity Indicators
                 (Independent Variables)                                 TCC
       •   Tourist satisfaction on destination                        (Dependent
       •   Tourist involved in crime                                   Variables)
       •   Local resident's satisfaction
       •   Employment Opportunities

in Malay ethnic restaurant. Therefore, this finding shown positive outcome as well
as proven from the previous study had made with differ factors in the business
context and differ demographic data. Lastly, it is recommended that the owner or
management must using professional development such as doing the business market
research. Business market research is the process of collecting data to decide whether
a particular products or services will satisfy the needs of the competitors. Market
research is important because it can build a stronger business such as understand
customer needs and wants, identify the new opportunities, develop marketing
strategies, minimises risk and can help to make a better decisions and gain advantage
against the competition.
    Future research must do in dept study to better understand the problem of this
topic due to the nobleness of the topic. As such mixed method should be used by
future researchers. By using mixed methods the study will get robust data from
both quantitative and qualitative approaches. The findings will be better with good
representation from psychological aspect and statistical. Also, mixed method will
be able to provides strengths that offset the weaknesses of both quantitative and
qualitative research. Hence, by using mix methods the strengths of each approach
can make up for the weaknesses of the other (FoodRisc Resource Centre 2016).
     Acknowledgement
   This study is partially funded by Universiti Putra Malaysia (UPM) Research
Grant postgraduate initiative and part of PhD study. Thank you to UPM Research
Management Centre for the opportunity. Also, thank you Universiti Teknologi
MARA for all the support in completing this study.
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